ARM (NASDAQ:ARM) Stock Falls 2.7% – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price was down 2.7% during mid-day trading on Wednesday. The company traded as low as $290.50 and last traded at $294.37. Approximately 3,401,833 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 7,669,170 shares. The stock had previously closed at $302.56.

Wall Street Analyst Weigh In

Several research analysts recently commented on ARM shares. TD Cowen reduced their price objective on ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Wells Fargo & Company dropped their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Royal Bank Of Canada reduced their target price on shares of ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Raymond James Financial reissued an “outperform” rating and issued a $166.00 price target on shares of ARM in a research note on Tuesday, August 25th. Finally, Guggenheim reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Stock Down 2.9%

The company’s 50-day moving average is $269.58 and its 200-day moving average is $265.87. The stock has a market capitalization of $285.45 billion, a price-to-earnings ratio of 275.01, a PEG ratio of 8.73 and a beta of 3.78.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. ARM’s revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.35 EPS. Sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Hedge funds have recently modified their holdings of the business. Wedmont Private Capital acquired a new position in ARM in the third quarter valued at about $1,322,000. Gainplan LLC acquired a new stake in shares of ARM during the third quarter valued at about $724,000. Zevenbergen Capital Investments LLC raised its stake in shares of ARM by 3.2% in the 3rd quarter. Zevenbergen Capital Investments LLC now owns 62,945 shares of the company’s stock valued at $18,233,000 after acquiring an additional 1,980 shares during the period. Avidian Wealth Enterprises LLC raised its stake in shares of ARM by 9.7% in the 3rd quarter. Avidian Wealth Enterprises LLC now owns 1,300 shares of the company’s stock valued at $377,000 after acquiring an additional 115 shares during the period. Finally, Vann Equity Management LLC acquired a new position in shares of ARM in the 3rd quarter worth approximately $229,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.